CIP-113, enhanced by the integration of CIP-143, represents a significant advancement in Cardano’s token capabilities by introducing interoperable programmable tokens. This unified standard bridges the gap between Cardano’s secure UTxO model and the advanced, account-like functionalities seen in Ethereum’s ERC-20 tokens. While it offers enhanced programmability and opens new opportunities for regulated assets, it also introduces trade-offs such as the need for administrative controls, requiring users to balance security and flexibility.
Q1: What was the primary goal of merging CIP-143 into CIP-113?
A1: To create a unified standard for interoperable programmable tokens on Cardano
Q2: How does CIP-113 achieve an account-like abstraction in a UTxO model?
A2: By using a consistent address scheme that allows wallets to display balances as if in an account
Q3: Which of the following is a key advantage of CIP-113 over Ethereum’s ERC-20 standard?
A3: It avoids the “approve/allowance” pattern, reducing certain types of exploits
Q4: What is one of the main trade-offs of using CIP-113 programmable tokens compared to traditional native tokens?
A4: Introduction of administrative controls that reintroduce an element of trust
